Applied Materials Inc. (AMAT) announced impressive third-quarter financial results after the market closed on Thursday, surpassing analyst expectations. The company, a major player in the chip equipment industry, reported revenue of $6.78 billion, exceeding the consensus estimate of $6.673 billion.
Applied Materials also reported adjusted earnings of $2.12 per share, outperforming analyst forecasts of $2.02 per share. This marks the ninth consecutive quarter where the company has exceeded both revenue and earnings estimates, according to data from Benzinga Pro. Total revenue saw a 5% year-over-year increase.
The company generated $2.39 billion in cash from operations and distributed $1.19 billion to shareholders, including $861 million in share repurchases and $331 million in dividends. Applied Materials ended the quarter with a strong cash position, holding $8.288 billion in cash and cash equivalents.
“Applied Materials is delivering strong results in 2024 with record revenues in our fiscal third quarter and earnings towards the high end of our guided range,” stated Gary Dickerson, president and CEO of Applied Materials. He emphasized the driving force behind these strong results, stating, “The race for AI leadership is fueling demand for our unique and connected portfolio of products and services, positioning Applied to outperform our markets over the longer term.”
However, Applied Materials’ fourth-quarter guidance fell slightly short of analyst expectations. The company anticipates revenue of $6.53 billion, plus or minus $400 million, compared to estimates of $6.91 billion. The company expects fourth-quarter adjusted earnings to be between $2 and $2.36 per share, versus estimates of $2.14 per share.
Applied Materials’ management team will hold a conference call at 4:30 p.m. ET to delve deeper into the company’s quarterly performance. Following the announcement, Applied Materials shares experienced a slight dip of 0.72% in after-hours trading, reaching $209.68 at the time of publication according to Benzinga Pro.
